Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

Property Inventory

The Property Inventory Unit of Business Services/Controller's Office
maintains a record of equipment possessed by WSU meeting the criteria for the
University's inventory system as indicated below. (RCW 43.19.1917)

Departments maintain records of departmental equipment that meet the
criteria for a departmental inventory system as indicated below.

Numbered identification tags are placed upon all inventoried equipment.
The identification numbers correlate the tagged items with the records
maintained in:

The University Property Inventory System in the Administrative Information
System (AIS) (PROPERTY) application,

The Departmental Inventory System in the AIS PROPERTY application, or

A departmental inventory database or spreadsheet.

University (Central) Inventory records are maintained in a mainframe computer
file in the University's AIS PROPERTY application.

The recording and tagging system facilitates tracking and periodic review of
University equipment.

INVENTORY CRITERIA

University Property Inventory System

An item is added to the University's inventory record if it meets the
criteria for capital equipment as defined by the state of Washington and
interpreted by WSU Property Inventory. Items tracked in the University Property
Inventory System are listed in the AIS PROPERTY application with a record
type "P."

Standard University Inventory Criteria

University-inventoried items have the following characteristics:

Cost is $5,000 or more.

Life expectancy exceeds one year.

Nonconsumable; the item does not change form with use.

Additional University Inventory Items

In addition, items that are designated as small and attractive assets from
a University-wide perspective must be inventoried in the University Property
Inventory System. Such small and attractive assets are inventoried, regardless
of cost, and include:

University departments may track assets not meeting the above University
inventory criteria (see above) in a departmental
inventory system. Generally, departments may record items costing less than
$5,000 in a departmentally-maintained inventory system.

Departments may use database or spreadsheet software or the Departmental
Inventory System in the AIS PROPERTY application to track such assets. Items
tracked in the AIS Departmental Inventory System are listed with a record
type "D." Departments are not required to use the AIS Departmental
Inventory System application.

Department Small and Attractive Assets

University departments are responsible for identifying assets deemed small
and attractive from the department's perspective. Such assets are items that
do not meet the criteria for small and attractive assets required to be tracked
in the University Property Inventory System. Examples include cameras, desktop
computers, optical devices, recording devices, etc.

Departments should ensure that appropriate procedures are in place to
monitor and safeguard departmental small and attractive assets. Departments
are responsible for tagging, inventorying, and tracking the items (see below).
The annual risk evaluation (see 10.04)
includes questions regarding the management of small and attractive assets.

The department identifies new items added to the departmental inventory
system by affixing bar-coded inventory tags purchased from University Stores;
University Stores item #51251. (NOTE: If an asset was previously tracked in the
University Property Inventory System, the department may use the old number
and tag to track the item in the departmental inventory system.)

Inventory and Tracking

Departments should periodically perform a physical inventory to reconcile
the actual assets with the items tracked in the departmental property system.

The department is responsible for disposing of obsolete assets (see 20.76) and removing the items from the
departmental inventory system. See below regarding
disposal of inventoried (tagged) items.

INVENTORY MANAGEMENT

The sections below apply to all inventoried (tagged) property whether the
property is maintained in the University Property Inventory System or in a
departmental property inventory system.

Responsibility

The department chair (or equivalent administrator) is accountable and
responsible for all equipment assigned to the unit. For this reason, a new
department chair should conduct a physical inventory of all departmental
equipment soon after assuming the position.

IMPORTANT: If a unit is moved to a new organizational area or if a new
organizational unit is created, the responsible department is to notify
Property Inventory by memorandum.

Personal Use

University property may not be used for private purposes. The department
chair may not authorize the loan of equipment to an individual for private use.
Likewise, an individual may not borrow University equipment for private use.
See 20.35 and 20.37.

Equipment Rental

With the approval of the responsible principal administrative officer, the
department chair may request that the central administration authorize rental
of equipment items not needed in University operations. See 20.40.

Equipment Coordinator

The department chair designates one or more individuals as equipment
coordinators and notifies Property Inventory and Surplus Stores in writing.
The notification includes the equipment coordinator's department, e-mail
address, and telephone. Responsibilities of equipment coordinators are outlined
in this section.

The department chair also submits an AIS Access Request to the Property
Inventory supervisor requesting that the equipment coordinator be given
access to the PROPERTY application. The department chair notifies Property
Inventory and Surplus Stores each time a new equipment coordinator is chosen.

When an appointed equipment coordinator is off work for an extended period
(longer than one month), the department chair chooses a temporary equipment
coordinator and notifies Property Inventory. Property Inventory is notified
again when the appointed equipment coordinator returns.

Departmental equipment coordinators may contact Property Inventory to request
access permission to use the Departmental Data Download function of the
PROPERTY application. The Departmental Data Download function allows equipment
coordinators to download records from the University and Departmental Property
Inventory Systems.

UPDATE OF INVENTORY RECORDS

Additions or changes to inventory records may be done in two ways. Property
Inventory staff may make the changes in the AIS PROPERTY application for the
department or department personnel may make the changes in the system
themselves. See below.

Changes Input to PROPERTY

By Property Inventory Personnel

Departmental personnel complete and route an Inventory Control Report form
to Property Inventory to have Property Inventory update unit records in the
University inventory system . See the sample in the PDF version of 20.50.5. Access the form by going to the
PDF template on 20.50.15.

By Departmental Personnel

If departmental personnel directly update University inventory records in
the AIS Property Application, completion of Inventory Control Reports is
not required. See 85.33
for AIS access authorization procedures.

To record location changes for University-inventoried equipment that do not
involve a transfer between administrative units, either directly update the
description in the online AIS Property application or complete an Inventory
Control Report.

If using the Inventory Control Report, check the Transferred To blank
and send the completed and signed form to Property Inventory.

Departments may record location changes for departmental inventory equipment
that do not involve a transfer between administrative units in the applicable
departmental inventory system.

Alternative Procedure for Monitoring University Inventory Items

The department chair (or equivalent administrator) may request approval to
implement an alternate tracking procedure to monitor locations of
University-inventoried department equipment. The administrator routes a
description of the proposed procedure to the University Property Inventory
Manager. After approval, the department is fully responsible for accurately
tracking equipment items.

Moving Equipment Off Campus

University equipment is occasionally moved to off-campus locations for the
completion of official business. Equipment is also moved off campus when rented
to non-University users.

NOTE: Employees may not make private use of any
University property which has been removed from WSU facilities, even if there
is no cost to the University. See 20.37. (WAC 292-110-010(5)(b))

Long Term

If a University-inventoried item will be off campus for at least a week,
use the online AIS Property application to update the location field and add
comments as necessary. Update the record again once the item is returned to
campus.

Departments may record location updates for departmental-inventoried items
in the applicable departmental inventory system.

No Computer Access

To record off-campus moves of University-inventoried equipment without
computer access, complete an Inventory Control Report as soon as the item leaves
and again as soon as the item is returned to campus.

Short Term

For moves of less than a week, the department is responsible for recording
and monitoring equipment location.

Acquisitions

Departments acquire property through purchase, fabrication, gift receipt,
transfer, and federal excess property programs. Equipment meeting the criteria
for University-inventoried equipment is to be recorded in the University
Inventory System. (See above.)

Purchases from Outside

Property Inventory reviews daily expense reports for equipment that should
be inventoried in the University inventory system.

When such items are noted, Property Inventory sends a Property Inventory
Card and a tag with a corresponding number to the appropriate equipment coordinator.

Fabricated Equipment

The need to fabricate an asset comes about when the equipment does not
already exist or additional functionality needs to be added to an existing
piece of equipment. Certain criteria must be met in order to fabricate equipment.
See 40.12.

The departmental equipment coordinator notifies Property Inventory of the
intent to fabricate equipment. The department forwards information on all
purchases to Property Inventory, including:

Purchase order numbers,

Purchasing card transaction numbers, and

Charges from any WSU departments.

Property Inventory issues an inventory number and tag and continues to add
purchase costs until the piece of equipment is finished.

The Business Services/Controller's Office recommends that Purchasing add the
inventory number in the comments sections on all purchase orders and purchasing
card transactions in order to help capture all costs.

As the costs to fabricate the equipment are incurred the charges not
already capitalized are reclassified to equipment through the journal voucher
(JV) process. Indirect cost is automatically adjusted when each JV is processed.

Gifts

Departments receiving donated equipment that meets University inventory
criteria (see above) send a Gift Transmittal form to
University Advancement with a copy to Property Inventory. See 30.70.
Property Inventory sends a Property Inventory Card and tag to the equipment
coordinator.

The equipment coordinator adds or corrects the following information on a
Property Inventory Card (see sample in the PDF version of 20.50.5) for each University-inventoried
item. Use a ballpoint pen or type.

All sections of the form must be completed, including:

Building--Where the item is normally kept. Enter the complete
name of the building.

Room--Where the item is normally kept.

Location--Use this field for the responsible individual's name.

Manufacturer

Serial No.

Model No.

Remove one copy and place it in departmental files. Retain this copy until
the item is disposed of or transferred. See disposal and transfer procedures
in this section.

The remaining copy is returned to Property Inventory within 10 working
days of receipt.

Placement of Inventory Tags

The equipment coordinator is responsible for placing inventory tags on each
University-inventoried equipment item indicated on a Property Inventory Card
and on each departmental-inventoried equipment item.

The equipment coordinator makes sure the surface is clean before he tag is
installed. Tags will not stick to dirty or greasy locations.

If a tag assigned to a University inventory item is damaged or rendered
unusable it should be returned to Property Inventory which issues a replacement
tag. Contact University Stores regarding replacement of a damaged or unusable
tag purchased for a departmental inventory item.

The coordinator places tags in similar locations to make future inventory
checks easier. Tags are placed as follows:

Electrical equipment -- Near the manufacturer's name plate.

Laptop computers -- Near the manufacturer's name plate. Usually on the
back or bottom of the computer.

Questions

Those having questions about tag placement should telephone Property
Inventory.

When Tags Cannot Be Used

When an inventoriable item is too small to tag, when placement of the tag
on the item would hinder operations, or when exposure to weather would cause a
tag to come off:

Place the tag on the departmental copy of the Property Inventory Card
or applicable documentation for an item logged into the departmental inventory.
File the tagged card or documentation with the department's inventory
records.

Write NO TAG on the copy of the card which is returned to Property
Inventory for a University inventory item.

If possible, etch the inventory number onto the item. An etching tool is
available for check out from the WSU Police Department.

Removal

Personnel are not to remove WSU inventory tags unless specifically
authorized by Business Services/Controller's Office personnel.

Immediate Tagging of University Inventory Items

If an equipment coordinator wishes to tag a University-inventory item
immediately after acquisition, he or she may obtain a Property Inventory Card
and inventory tag directly from Property Inventory in the Business
Services/Controller's Office, French 240, campus mail code 1025.

If the new acquisition is a purchase from an outside vendor, the equipment
coordinator provides Property Inventory with a copy of the field order (purchase
order) or packing slip/invoice.

For gifts, the equipment coordinator routes a Gift Transmittal to Advancement
Services and Property Inventory. See 30.70.

Transfers Between Departments

The following discussion applies to the transfer of state-owned equipment
only. Refer to 20.78 for
instructions regarding federal excess equipment. Contact Sponsored Programs
Services for instructions regarding transfers of equipment owned by grant or
contract sponsors.

The equipment coordinator indicates receipt of the item by signing the
appropriate signature block on the Inventory Control Report.

The equipment coordinator enters the current equipment location under
Building/Room No. column.

The coordinator retains a copy and sends the original of the Inventory
Control Report to Property Inventory, French 240, mail code 1025.

Deletions from Inventory

Disposal of State-Owned Equipment

Generally, all equipment donated to or purchased by the University,
regardless of funding, is considered to be state-owned equipment. Items which
are damaged, obsolete, or otherwise considered unnecessary or unusable may
be disposed of as indicated below.

Departments are reminded that University property may not be transferred
to an individual or used for private purposes. (See above.)

Disposal of Inventoried (Tagged) Items

It is the department's responsibility to determine if their items are on
University inventory or departmental inventory. (NOTE: Some untagged items
may be included on the University inventory or the departmental inventory.
See "When Tags Cannot Be Used" above.)

University- or departmental-inventoried (tagged) items which are damaged,
obsolete, or otherwise considered unnecessary or unusable may be disposed of
by one of the following methods:

Transferring the item to Surplus Stores. Surplus Stores may scrap,
destroy, or resell the item. See 20.76. This action results in the
deletion of the item from the University inventory, as applicable. (See below.)

Selling or transferring the item to another University department. See 20.80.

Removing serviceable parts from the item for use in other equipment of
the same kind after receiving approval from Surplus Stores to do so.
The department must contact Surplus Stores for a Property Destruction
Certification form and submit an online SDR at:

(In such cases involving a University-inventoried
item, Surplus Stores notifies Property Inventory of the deletion from the
University Property Inventory System.)

NOTE: Each inventoried (tagged) item disposed of must be accounted for
by one of the above methods.

Deleting Items From University Inventory

Surplus Stores provides an automated report with a list of
University-inventoried items to Property Inventory. (University-inventoried
items are tracked in AIS PROPERTY with a record type "P.") Property
Inventory personnel only delete record type "P" items from AIS
PROPERTY after notification by Surplus Stores.

Deleting Items From Departmental Inventory

Departments are responsible for deleting departmental inventory items
from the AIS PROPERTY application (items with a record type "D") or
from the departmental inventory database or spreadsheet.

Disposal of Noninventoried (Non-Tagged) Equipment

Departments must dispose of noninventoried (nontagged) items which are
damaged, obsolete, or otherwise considered unnecessary or unusable through
Surplus Stores. EXCEPTION: Surplus Stores may not accept some items. For
examples of items not accepted, go to:

Each department completes a physical count of inventoriable equipment once
each two years.

Notification

Property Inventory notifies the appropriate administrator by memorandum
when an inventory count is due from the unit.

University Inventory Property List

Property Inventory issues the department a computer listing of
University-inventoried equipment. The department is responsible for
generating a listing of equipment recorded in the departmental property
inventory.

The department chair (or equivalent administrator) assigns an individual
the responsibility of checking each listed item against equipment possessed
by the department.

The equipment coordinator enters exceptions online in the AIS PROPERTY
application and/or the applicable departmental inventory system. Exceptions
not updated online regarding University inventory items are reported to Property
Inventory by memorandum submitted with the signed listing of equipment.

Signature

The individual who completes the physical inventory signs the upper
left-hand corner of each page of the computer listing of
University-inventoried equipment. The responsible chair or equivalent
administrator signs the certification statement at the end of the listing.

Deadline

The department is responsible for returning the completed and signed listing
of University-inventoried equipment within 45 working days of the date the
inventory request was received from Property Inventory.

EQUIPMENT ACQUIRED ON SPONSORED PROGRAMS (11-14)

See also 40.12
and 40.13.
See 20.78 for information
about federal excess equipment.

If title vests with the state of Washington, the procedures applying to
state-owned equipment described above are followed.

If title vests with the federal government, Property Inventory issues federal
inventory tags and WSU inventory tags for all equipment meeting the University's
definition standard inventory criteria above. The department is responsible
for ensuring that both types of tags are installed according to the above
procedures.

Furnished Federal Property (Government-Owned)

If the property is furnished by a federal agency or a third party for use
on a federal grant or contract and the title vests with the federal government,
the item must be inventoried regardless of value or cost. The department is
responsible for notifying Property Inventory when such an item is received.
The department affixes a WSU property tag and a federal property tag if one
is provided.

Physical Inventory

Certain federal sponsors require a regular (usually annual) physical
inventory of equipment purchased under the agreement or furnished by the
federal government. Many sponsors also require a physical inventory at the project's
termination.

Sponsored Programs Services prepares a list of accountable equipment and
sends it to the responsible department administrator.

The chair or equivalent administrator is responsible for verifying location,
condition, and serial and model numbers. The administrator is also responsible
for verifying that WSU and federal inventory numbers are affixed.

The chair or equivalent administrator indicates any corrections to the list
and signs and returns the list to Sponsored Programs Services. The administrator
is to return the signed and corrected list within 14 working days of the issue date.

Sponsored Programs Services requests each subcontractor to provide a list
of federal property acquired or furnished under the subcontract.

Property Reports

Sponsored Programs Services prepares and submits to the sponsor or agency
any required property reports in accordance with agency or sponsor deadlines.

Disposition of Equipment at Project Termination When Title Vests with
Sponsor

After the final physical inventory is completed, Sponsored Programs Services
usually requests that the sponsor transfer the title.

If the sponsor approves the transfer, Sponsored Programs Services personnel
notify the responsible equipment coordinator. The equipment coordinator removes
the sponsor's markings from the equipment.

If the sponsor does not approve the transfer, Sponsored Programs Services
requests disposition instructions from the sponsor.

See the PDF form:20.50.15: Inventory Control Report
Complete and/or print as needed.